CEO rage is wasted, says ACCC

Graeme Samuel: "(Cartels) do enormous damage. They are in a sense a form of silent extortion."

Australian Competition and Consumer Commission chairman Graeme Samuel has warned chief executives that the regulator will not be swayed by public attacks on its integrity.

Mr Samuel yesterday told the Melbourne Media Club that some company chiefs had adopted a confrontational stance towards the ACCC and used the media to launch tirades against it - and against him personally.

"Whilst these public tirades may superficially establish the CEO as the hero or defender of the organisation, in my view they tend to breed a culture of confrontation or non-compliance," he said. "But they don't influence the ACCC's approach to enforcing the (Trade Practices) act."

Labelling some CEOs "recalcitrants", Mr Samuel said he was meeting business leaders to explain and emphasise the ACCC's position. This included spelling out that the regulator would take the same approach under his chairmanship as when Allan Fels was at the helm; any differences would be in style rather than substance.

He said he strongly backed the concept of jail terms for executives who breached the law, in line with recommendations being considered by the Federal Government. "The view of the commission is that jail is a far more effective deterrent for the wrongdoer." Under current law, only fines can be imposed.

Last week, the full bench of the Federal Court fined several executives $45,000 each after music giants Universal and Warner were found to have bullied retailers stocking imported rather than Australian-made CDs. In addition, the companies were each fined $1 million.

Mr Samuel said cartels were the "worst form of violation of competition law", and reiterated calls for companies involved in a cartel to come forward.

The ACCC is offering leniency to companies that volunteer proof of cartel behaviour in the Australian market, even if they are involved.

He said the difficulty with the policy was that cartels were, by definition, secret arrangements.

"They do enormous damage to the community generally, the consumers. They are in a sense a form of silent extortion."